Crude oil inventories definition

Crude oil inventories are the volumes of crude held in storage at a given time, reported as the number of barrels sitting in tanks, terminals, and other facilities. In the United States, the closely watched figures are the weekly stockpile numbers published by the Energy Information Administration (EIA).

The weekly EIA report shows whether inventories rose (a build) or fell (a draw) over the period. A larger-than-expected build signals weaker demand or stronger supply and often weighs on prices, while a larger-than-expected draw points to tighter conditions and can lift prices.

These official EIA figures are separate from the privately produced inventory estimate released by the American Petroleum Institute (API), which comes out a day earlier. Traders watch both, but the EIA report is the government source and usually carries more weight.